easha Pratt will graduate from high school next month and cannot decide what she wants to do. She had originally planned to go to college and major in marketing and accounting, but now she is thinking about opening her own business. Teasha has worked in a gift store for the last two years and gained a lot of experience and knowledge by working with inventory, pricing, customers, and accounting. However, her real interest is in crafts. After conducting some marketing research, Teasha determines that there is a very small market for a craft store (there are currently two craft stores in town), but there is a larger market for a gift store. Teasha decides to open a small gift store in the mall with a loan from the local bank. After much hard work, she locates two suppliers, Gifts Plus Wholesalers and Hearts Manufacturing Corporation, hires employees, buys display equipment, accounting equipment, a cash register, supplies, etc. Three months later, she is ready to open her store. Questions: 1. What are some economic choices that Teasha had to make? 2. What were the trade-offs and opportunity costs of one of Teasha's economic decisions? 3. Based on the information given, do you think Teasha made the right economic choice in opening her own business? Explain.
Teasha Pratt will graduate from high school next month and cannot decide what she wants to do. She had originally planned to go to college and major in marketing and accounting, but now she is thinking about opening her own business. Teasha has worked in a gift store for the last two years and gained a lot of experience and knowledge by working with inventory, pricing, customers, and accounting. However, her real interest is in crafts. After conducting some
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